XRP Rebounds After Market Crash
XRP has experienced a strong rebound, gaining 7% in the last 24 hours to trade at $2.30 on February 26. The cryptocurrency has recovered 12% from its 24-hour low of $2.06 as the overall market sentiment improves.
The surge in XRP’s price comes amid renewed investor optimism following Ripple’s proposal for a significant upgrade to the XRP Ledger (XRPL). This development, combined with a bullish technical setup, has raised hopes of a V-shaped price recovery.
XRP Ledger Upgrade Proposal Sparks Optimism
One of the key drivers behind XRP’s latest price rally is Ripple’s proposal to upgrade XRPL, a move that could introduce advanced functionality and expand its use cases beyond cross-border payments.
Developers at RippleX have outlined the upgrade on the DEV Community, focusing on integrating WebAssembly (WASM) to enhance XRPL’s programmability. This marks one of the most significant changes to the ledger since its inception in 2013.
The proposed upgrade aims to introduce smart contract capabilities, potentially positioning XRPL as a strong competitor in decentralized finance (DeFi) and institutional applications. The added functionality has boosted investor confidence, as it signals an expansion of XRP’s potential utility.
Technical Indicators Point to a V-Shaped Recovery
XRP’s recent price action suggests the formation of a V-shaped recovery pattern on the four-hour chart. This bullish pattern occurs when an asset sees a sharp rebound following a steep decline, with the price rising back to a key resistance level known as the neckline.
Currently, XRP is trading just below a crucial supply zone between $2.52 and $2.54, which coincides with the 50-day and 100-day simple moving averages (SMAs). If bulls can push the price above this level, the chances of completing the V-pattern increase, setting the stage for a potential rise to $2.60—an additional 12% gain from current levels.
Supporting this bullish outlook is the Relative Strength Index (RSI), which has rebounded from an oversold level of 17 on February 25 to 39 on February 26. This suggests that buying momentum is returning, further strengthening the case for a continued upward trend in XRP’s price.
Outlook for XRP
With market sentiment showing signs of improvement and technical indicators pointing to a potential breakout, XRP’s price trajectory appears bullish in the short term. The success of the proposed XRPL upgrade and broader market conditions will play a crucial role in determining whether XRP can sustain its recovery and reach new highs in the coming weeks.
